Dubai-based Dodsal Group has won a $1.1bn contract from Algerian state oil company Sonatrach to construct a gas-oil separation plant at Hassi Messaoud in the east of the North African country.

Dodsal was awarded an engineering, procurement and construction (EPC) to build a separation and compression centre (CSC) at the periphery area of the South HGA-Hassi Messaoud.

The plant, which is expected to be completed by 2020, will have the capacity to produce 66,000 barrels a day of oil.

Dodsal has been awarded other projects in Algeria such as the Skikda liquefied natural gas (LNG) project in 2009, also from Sonatrach.

Sonatrach is the biggest producer of natural gas in Africa. The country expects to produce 141.3 billion cubic metres of gas this year and plans to increase output to 143.9 billion cubic metres in 2018.

Last year Japanese group JGC was awarded a $1.4bn contract by Sonatrach to expand production at Algeria’s Hassi Rmel gas field.